After satisfying obligations to creditors, the government, and preferred stockholders, any remaining earnings will most likely be allocated to ________.
A) common shareholders as cash dividends
B) common shareholders as stock dividends
C) other firms requiring capital
D) pay future preferred dividends

Question

Quizplus · Accepted Answer

Any remaining earnings will be distributed as dividends to common shareholders, either as cash dividends or stock dividends, after obligations to preferred stockholders, creditors, and the government are met.

After Satisfying Obligations to Creditors, the Government, and Preferred Stockholders